Rinehart siblings take sides in family trust dispute

Bianca Rinehart (left) is precluded from putting herself forward as replacement trustee of a $5 billion family trust, while Ginia (far right) has sided with her mother Gina (second from left) in the dispute.
AFR

The bitter feud between mining magnate
Gina Rinehart
and her two eldest children has morphed into a high-stakes sibling battle, after youngest daughter Ginia successfully argued her older sister Bianca should not be considered as trustee.

The rejection was at the request of her sister Ginia, 27, who has sided with her mother in the dispute over the $5 billion family trust, set up for the­ ­children by their grandfather Lang ­Hancock.

Bianca, 37, has stood alongside her brother John for the last two years, fighting their mother over her management of the family trust and accusing her of deceiving them.

It was not until Tuesday morning that a last-minute tactical decision was made to nominate Bianca as replacement trustee – a move supported by John, who withdrew his nomination for the coveted position.

Bianca’s decision was vigorously fought by Ginia, who argued that she would need time to investigate and gather evidence on whether her sister would be suitable, and that could not be done in the space of a few days.

On Thursday, Justice Brereton agreed and said that to allow Bianca to stand would create an “unacceptable injustice" to Ginia.

He said that despite it being “attractive and desirable" to have as many potential trustees before the court as possible, on balance he had to refuse the nomination, adding that it was with reluctance. As a result, the only nominated trustee for the plaintiffs is accountant Bruce Carter, unless John decides to nominate again.

Related Quotes

Company Profile

Drama between the two camps heated up on the third day of the hearing after Ginia’s lawyer handed up a sealed affidavit.

Chris Withers, barrister for John and Bianca, told the court it should not be considered in the process.

“It was more than nine years ago and in my respectful submission this is entirely an improper thing to raise," he said. Another affidavit sworn by Ginia’s lawyer, John Dalzell, said his client opposed Bianca’s appointment on the basis of a “history of family disputes, including the present hard-fought, high-profile litigation in which Bianca has been a plaintiff".

Ginia’s barrister Richard McHugh, SC, said there were concerns as to whether Bianca had ever spoken to the media and whether she had the “necessary independence that is required" for the trustee role.

The feud broke out days before Ginia was due to turn 25 and the trust vest after Mrs Rinehart told her children they would be bankrupted if they did not extend the vesting date and give her further powers.

Last week, she unexpectedly relinquished her role as trustee. A failed mediation between family members over who should replace her has led to the issue being agitated in court this week.